Anatel to Raise BRL3.8bn from 4G Auction

Brazilian telecom regulator Anatel expects to raise a minimum BRL3.8 billion (USD 2 billion) with auction of mobile frequencies in the 2.5GHz and 450MHz bands. Anatel says that 2.5GHz spectrum is to be used for LTE mobile services while 450MHz spectrum will be used to expand the coverage of voice and data (broadband internet) services in rural areas.

According to the regulator, all municipalities with more than 100,000 inhabitants will have 4G coverage until December 31, 2016. The host cities of the soccer’s Confederation Cup will have 4G coverage by April 30, 2013, while the headquarters and branch offices of the World Cup will have the service by December 31, 2014.

The selection criteria for the winning proposal for the 450 MHz band will be the lowest price to the consumer. If no proposals or proposals are unsatisfactory, the 450 MHz band will be offered along with lots of 2.5 GHz band.

By December 31, 2015, rural areas within 30 km of the headquarters of all municipalities will be covered in the 450 MHz band with voice and data. Regulators aims to provide services at a price of BRL$0.31 for pre-paid minutes and BRL$ 30.60 for monthly allowance of 100 minutes post-paid. The monthly allowance of data will be BRL$32.59 for speeds of 256 Kbps.

On June 5, the regulator will receive identification documents and regular tax, the price proposals and documentation enabling those interested in participating in the bidding. The opening of the envelopes is expected to occur on June 12.